Live Chat!

Tim Ferriss, Alexis Ohanian, And Charles Best On Crowdfunding For Good

How do you harness the power of the crowd to make something positive happen? Join Fast Company editorial director Jill Bernstein for a live Q&A with Ferriss, Ohanian, and Best on Thursday, February 20th at noon (ET).

The conversation starts on Thursday, February 20th at noon (ET) -- but you can start submitting your questions using the "Make a comment" box above!

In our annual 50 Most Innovative Companies in Business issue, we profiled DonorsChoose,
an education crowdfunding site that founder Charles Best launched
back in 2000 while he was a teacher at a Bronx public school.
His organization has raised an impressive $225 million -- more than 10
million students have benefited from DonorsChoose-funded projects. Now he's using his platform toward an even bigger goal: education reform.

All that fundraising did not, of course, come easy.So how did he do it—and what can your organization learn from his success? Join Best as he discusses crowdfunding for good with two industry all-stars:

@Charles Best I am not very strong, but I'll protect you too, Charles.

by Alexis Ohanian2/20/2014 5:39:19 PM

@JillBernstein: I love DC's new approaches, as well as the controversy. I think AIMING for controversy alone -- without a mission-driven purpose behind it -- is usually a waste of time. It's a sugar high with no lasting impact. But the type of controversy we're talking about here with DonorsChoose.org (curriculum reform, holding politicians accountable and tactfully pressuring them, etc.) is HUGELY aligned with Charles' values and the long-term ethos and strategy of DonorsChoose.org, in my mind. With those conditions met, I think: the more controversial, the better.

by Tim Ferriss2/20/2014 5:39:48 PM

Also, Charles, I am getting weaker by the day, but I shall start training again :)

Tim, How important do you feel it is to have an established network/following prior to launching a Kickstarter Campaign?

by Bill Aug2/20/2014 5:44:40 PM

@BillAug: I don't think it's necessary. Helpful, certainly, but not necessary. Check out the "Hacking Kickstarter" post I wrote about Soma Water. They raised $100K in 10 days through two things: good homework on past successful campaigns, and targeted hustle based on that. They knew who to pitch and crafted great email. Those email templates are also in that post, which you can use yourself.

by Tim Ferriss2/20/2014 5:46:08 PM

If you’re a nascent nonprofit and get lucky enough to be able to have a celebrity interested in your cause, what’s the best way in which to have him or her help?

by Jill Bernstein edited by Anjali Mullany2/20/2014 5:46:25 PM

I think a lot of nonprofits start by telling the celebrity target about how great their organization is. Instead, we try to tell the celebrity target how they could use DonorsChoose.org to address a need they have. For example, we first got Stephen Colbert engaged when we saw that he needed a way for the Colbert Nation to support his satirical run for the Democratic Primary in South Carolina. I figured that he probably didn't want people donating cash to his campaign, but he probably DID want a way for people to take action. So we pitched him (via Craig Newmark of Craigslist) on a philanthropic presidential straw poll, where people could donate to a classroom project in honor of their favorite candidate.

In short, it's about presenting a platform rather than a prescription to the celebrity prospect.

How has the field of crowdfunding in general changed in the years since you three entered it – or, really, pioneered it. Is it getting easier or harder to attract donors? Are there stunts that don’t work anymore?

by Jill Bernstein edited by Anjali Mullany2/20/2014 5:53:03 PM

@JillBernstein:

It's never been easier -- and harder -- to raise funds via crowdfunding. The technology platforms are SO much better than 3 years ago, it's not even worth a comparison.

The challenge is similar to self-publishing: it's never been easier to self-publish a book on Amazon (or put up a Kickstarter/DonorsChoose.org/Indiegogo campaign), but you now have 1,000x more noise and competition as a result.

This means that, while tech is no longer a barrier, marketing and PR is. You need to really study up on successful case studies and have a launch plan to get eyeballs to your campaign versus the sea of others.

by Tim Ferriss2/20/2014 5:53:36 PM

What do you think about the potential to use crowdfunding to raise money for scientific research in a meaningful way?

This has only just begun. The results could mean a new perspective on publishing entirely, since these crowdfunded research projects tend to have OPEN publishing requirements instead of closed to journals. That means more data for the world, more scientific progress.

by Alexis Ohanian edited by Anjali Mullany2/20/2014 5:53:53 PM

@AmyAlbo: When it comes to scientific research, I should first mention all the awesome science projects on DonorsChoose.org, which attract support from a range of citizen donors and foundations focused on STEM education. The greatest of these is Chevron, our most generous corporate partner, which has brought thousands of science projects to life for nearly a million students.

But I imagine you're thinking of academic scientific research, and there are several crowdfunding platforms focused on that very field! I do worry that those focused on cute animals may draw the lion's share of scientific crowdfunding, and that research that doesn't lend itself to imagery will get short shrift, but maybe that would still be a net positive.

by Charles Best2/20/2014 5:54:36 PM

@JillBernstein: We at breadpig have worked with artists+creatives to crowdfund a few million dollars over the last few years and it's definitely evolved. There's way more competition, but we've also seen some amazing campaigns (one of the ones I gush about all the time was our 600K campaign for a ChooseYourOwnAdventure version of Hamlet by Ryan North)

There are also new platforms emerging that take crowdfunding away from a project-by-project basis -- the one I backed and am most excited about is Patreon.com, which takes the old school model of patronage and blows it out to anyone with as little as a $1 to give every month.

Also, don't forget that not all studies need to consume a lot of capital, given new tech. Here is a collaboration between Lift.do (a start-up I advise), UC Berkeley, and 10 or so "influencers" who are leaders in the dietary world:

100+ pounds lost on The Slow-Carb Diet®. If you want to lose fat in 2014, how about we do it together?

by Tim Ferriss edited by Anjali Mullany2/20/2014 5:56:32 PM

Perhaps you personally have zero capital -- no problem. Just organize and matchmake for these various groups/companies, and lay out a structured proposal for your study, using tech to relieve promoters (bloggers, advisors, etc.) of the burden of data collection.

by Tim Ferriss2/20/2014 5:57:43 PM

Jill great questions, thank you! You asked a lot of what I wanted to ask! One question: how can teachers get more involved building up Donors Choose?

by Please answer my question!2/20/2014 5:59:38 PM

@Pleaseanswermyquestion!: What a fun question! Most of all, we hope teachers will tell other teachers about DonorsChoose.org.

Some worry that if they spread word, there'll be less funding for their own projects, but we believe that the more teachers create projects, the more donors and $$ we'll be ably to rally.

by Charles Best edited by Anjali Mullany2/20/2014 6:01:37 PM

Thanks for the advice on building our board! Great Q&A so far...We successfully completed a crowdfunding campaign on Indiegogo last year, which was a great experience. Looking into the future though, raising money via such platforms doesn’t seem like the most viable way to raise money on an annual basis (correct me if I’m wrong…). What would you suggest for approaching companies for sponsorships and donations? Ensuring alignment is obviously important, but what other advice would you have?

by Caitlin McDonough @Prepr2/20/2014 6:03:04 PM

Along the lines of Caitlin's question, let’s talk for a minute about a subject that no one ever wants to talk about: Asking for money. Charles, you told us recently that that anyone be good at this if they: 1) keep prospective donors’ needs in mind and try to help them reach their OWN goals, 2) get to know them personally and tailor your appeal, and 3) just be really excited about what you’re doing. What advice do you have for born introverts like yourself– how can they learn to communicate excitement?

by Jill Bernstein2/20/2014 6:04:43 PM

Tim and Alexis, do you have other tips you’d add?

by Jill Bernstein2/20/2014 6:06:00 PM

What is the number one issue for Entrepreneurs who are looking to develop products or services that deliver social good? Is it building a like minded (soul) tribe? Or understanding how to monetize it?

by Bassanio Peters edited by Anjali Mullany2/20/2014 6:06:51 PM

@BassanioPeters:

It's positioning. How do you answer the question: "What makes you unique? Who is this for... and not for?"

A lot of non-profits muddle their message by trying to be too much, and do too much. Be hyper specific. That's your "product." Then decide (or research) who your "customers" (donors) are. If everyone is your customer, no one is. Be specific; aim for "1,000 true fans" and read the piece of the same name by Kevin Kelly. Read "The 22 Immutable Laws of Marketing" by Ries and Trout.

by Tim Ferriss edited by Anjali Mullany2/20/2014 6:06:53 PM

@CaitlinMcDonough@Prepr: Thoughtful question, Caitlin. One thing that sets DonorsChoose.org apart from other crowdfunding platforms is that our creators (=teachers) are likely to create multiple projects within a single year, for multiple years. That creates subscription giving opportunities that might not be relevant at other "one and done" crowdfunding sites. In this vein, we can usually detect if you have donated to a project because you know that teacher personally, and if that's the case, we alert you every time your teacher friend has a new project. All of which lends itself to sustained (rather than one-shot) giving.

And to your point about sponsorships, we're also distinct in that roughly half of the $$ given to projects on our site come from major partners rather than citizen donors. But we use those institutional $$ to fuel citizen philanthropy--as in the case of Facebook giving DonorsChoose.org gift cards to their advertising clients, which starts as a big check but ultimately manifests as thousands of individuals picking projects to support, and hopefully becoming donors in their own right.

by Charles Best2/20/2014 6:07:59 PM

@JillBernstein:

by Tim Ferriss2/20/2014 6:07:59 PM

@Caitlin If you're working on something your passionate about, that passion really shines through -- even if you're a "born introvert"-- Meyers Briggs is bullshit anyway:

Inc.comIf you want a stranger to give a damn about what you're working on, you'd better give a damn yourself.

Talking to people, whether on stage or 1on1, is a muscle that needs exercise, though, but if you're starting with something your passionate about, keep taking advantage of every chance to talk to someone about it. Remember that the worst thing that'll happen is they'll say no. But lead with that passion and show that you've been able to channel it into getting stuff done, which is what people want to see -- accountability and results.

by Alexis Ohanian edited by Anjali Mullany2/20/2014 6:10:38 PM

@JillBernstein: A born introvert (like me) may not feel comfortable grabbing the mic and holding forth, but anyone can be inquisitive, and ask a lot of questions--and then follow-up questions to show you've really been listening. And that's probably more effective than being eloquent and charming. At least I hope so :)

by Charles Best2/20/2014 6:10:46 PM

Tips for asking for money:- Study ALL types of fundraising, not just non-profit fundraising. Study how start-ups get venture capital funding. What do their pitches look like?- Borrowed from startups: "Ask for money and you'll get advice; ask for advice and you'll get money." Don't always try and seal the deal on the first coffee/phone date.- You goal is to raise money (and effect change), not necessarily get it from one person. Though I donate to DonorsChoose.org personally, my main value is promotion via a blog with 1.5M readers, etc. MAKE IT EASY for bloggers and others to help you with their audiences, even if they don't have a ton of capital to put in themselves.

by Tim Ferriss2/20/2014 6:10:52 PM

@CharlesBest: Agreed. Asking smart question will often get money faster than holding court with rehearsed pitch statements. If it seems like you're regurgitating a script, it'll probably fall short. Aim to LEARN from meetings with smart/effective folks, first and foremost. That will often lead to donations, but not vice-versa.

by Tim Ferriss2/20/2014 6:12:57 PM

Thank you all so much for joining us. Before we go, I’ve got one last question. Tim and Alexis, you told us earlier why you got involved with DonorsChoose. Why have you STAYED involved with DonorsChoose?

by Jill Bernstein2/20/2014 6:13:30 PM

@JillBernstein: 1) Because DonorsChoose.org is run like a lean for-profit startup. They watch the numbers meticulously, and their team is full of A Players. Many non-profits are sadly refuges for people who can't hack the speed and pressure of a for-profit company. DonorsChoose.org can keep up with any of the fastest growing start-ups I deal with, and that's incredible.2) Because DC.org delivers on its promises.3) Because DC.org aims to change the world, arguably already has, and certainly will.

by Tim Ferriss2/20/2014 6:16:56 PM

I stay involved with DonorsChoose.org because if I'm gonna write a chapter in my book about them, I'd better not fall off the map.

Heh, but really, it's because education is so important to making sure that we don't leave behind an entire generation. I'm where I am today because of good fortune I had in a great MD public school education but if we don't get this right, the new economy is going to further separate the haves and the havenots in this country. A big part of that process is making sure every kid in America gets access to the best resources and supplies they can as well as empowering the awesome teachers who are committed to helping them be as awesome as possible. Donorschoose.org is 100% transparent, accountable, and awesome -- who else would I support to make this change?

Thanks, everyone!

by Alexis Ohanian2/20/2014 6:17:55 PM

Thanks so much, Tim, Alexis, and Fast Company team. That was super fun.

by Charles Best2/20/2014 6:20:21 PM

Thanks everyone for joining this live Q&A. We're sorry we didn't have time for all your terrific questions, but luckily Charles, Tim, and Alexis are all super active on Twitter, so direct your unanswered questions there!